The Parkmead (PMG) AI Stock Analysis

• Market Cap: £17.48M
• Dividend Yield: N/A
• Average Volume (3M): 127.07K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.32
• Revenue Growth: -37.83%
• EPS Growth: N/A
• Country: UK
• Employees: 10
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.01
• Shares Outstanding: 109,266,930
• 10 Day Avg. Volume: 124,242
• 30 Day Avg. Volume: 127,071
• PEG Ratio: -0.16
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -49.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: 16.50p ▲(3.13%Upside)

The overall stock score of 64 reflects Parkmead's strong balance sheet and attractive valuation. However, challenges in revenue growth and cash flow, paired with recent strategic shifts towards renewables, highlight both opportunities and risks.

The Parkmead Business Overview & Revenue Model

Company Description

The Parkmead Group plc, an independent oil and gas company, engages in the exploration and production of oil and gas properties in Europe, North America, and internationally. It operates through three segments: Oil and Gas Exploration and Production; Energy Economics; and Pitreadie. The Oil and Gas Exploration and Production segment invests in oil and gas exploration and production assets. The Energy Economics segment provides energy sector economics, valuation, and benchmarking, advising on energy policies and fiscal matters, undertaking economic evaluations, supply benchmarking services, and training. The Pitreadie segment is involved in mixed farming activities, as well as renewable energy opportunities. It produces from four gas fields in the Netherlands; and holds interests in a total of 22 exploration and production blocks. The Parkmead Group plc was incorporated in 2000 and is headquartered in Aberdeen, the United Kingdom.

How the Company Makes Money

The Parkmead Group makes money through the exploration and production of oil and gas. Revenue is primarily generated from the sale of hydrocarbons extracted from its operated and non-operated fields. Key revenue streams include the production of natural gas in the Netherlands and oil in the UK North Sea. Additionally, Parkmead may engage in strategic partnerships and joint ventures to optimize resource development and share operational risks. The company also seeks to increase revenue by expanding its asset base through acquisitions and applying advanced technologies to enhance resource recovery.

The Parkmead Financial Statement Overview

Summary

The Parkmead Company shows mixed financial performance. The income statement indicates improved profitability with better EBIT and EBITDA margins, but revenue has decreased significantly. The balance sheet is strong with a high equity ratio and low debt, indicating financial stability. However, cash flow analysis reveals challenges in operational cash flow, which could impact liquidity and growth.

Income Statement

The income statement reflects significant volatility. The gross profit margin for 2024 is approximately 59.76%, indicating a good level of profitability at the gross level. However, the net profit margin is skewed by a one-time event or accounting adjustment, as evidenced by the large net income in comparison to revenue. Revenue has decreased significantly from 2023 to 2024, with a negative growth rate, indicating challenges in maintaining top-line growth. EBIT and EBITDA margins have improved from the previous year's negative margins, showcasing a partial recovery.

Balance Sheet

The balance sheet shows a stable equity position with an equity ratio of approximately 72.04% for 2024, indicating financial stability. The debt-to-equity ratio is low at 0.06, reflecting minimal reliance on debt, which is a positive sign. Return on equity is high due to a significant net income, but this may not be sustainable. Overall, the balance sheet is strong, albeit with potential risks if revenue continues to decline.

Cash Flow

Cash flow analysis shows a decrease in operating cash flow from 2023 to 2024, reflecting operational challenges. Free cash flow is positive but reduced year-over-year, which may impact future investments and growth. The operating cash flow to net income ratio is skewed due to the disproportionate net income figure. The cash flow position is relatively stable, but the downward trend in operating cash flow is a concern.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	4.40M	5.72M	14.77M	12.13M	3.61M	4.08M
Gross Profit	2.41M	3.42M	12.53M	10.76M	1.77M	1.27M
EBITDA	890.00K	2.29M	-1.48M	6.01M	-1.19M	767.00K
Net Income	3.00M	4.94M	-42.33M	-814.00K	-13.81M	-482.00K
Balance Sheet
Total Assets	23.73M	27.27M	28.62M	86.32M	78.67M	89.81M
Cash, Cash Equivalents and Short-Term Investments	6.85M	9.44M	11.58M	23.26M	23.38M	25.71M
Total Debt	0.00	1.25M	1.46M	948.00K	500.00K	3.60M
Total Liabilities	5.26M	7.63M	13.96M	29.32M	20.95M	18.46M
Stockholders Equity	18.47M	19.64M	14.66M	56.99M	57.72M	71.35M
Cash Flow
Free Cash Flow	-1.75M	1.12M	4.98M	745.00K	-1.96M	-4.79M
Operating Cash Flow	-1.48M	2.27M	6.53M	4.53M	-1.31M	-1.00M
Investing Cash Flow	-339.00K	-3.85M	-17.69M	-4.14M	3.47M	-3.60M
Financing Cash Flow	-435.00K	-518.00K	-453.00K	-962.00K	-3.63M	-523.00K

The Parkmead Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PMG, the sentiment is Positive. The current price of 16 is above the 20-day moving average (MA) of 15.39, above the 50-day MA of 15.32, and above the 200-day MA of 14.93, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 65.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PMG.

The Parkmead Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PMG	64 Neutral	£17.48M	5.82	17.71%	―	-37.83%	―
Sector *	52 Neutral	C$3.00B	-1.55	-3.48%	6.42%	2.66%	-49.31%
CAD	44 Neutral	£7.78M	7.41	-18.63%	―	18.37%	-582.93%
SOU	―	£17.69M	―	-137.88%	―	―	―
UPL	―	£16.63M	―		―	―	―
CHAR	47 Neutral	£21.69M	―	-34.71%	―	98.57%	-26.61%
PRD	―	£37.75M	―	-9.54%	―	―	―

The Parkmead Corporate Events

Parkmead Group Shifts Focus to Renewable Energy with Strategic Asset Sale

Parkmead Group has successfully completed the sale of its UK offshore petroleum licenses, marking a strategic pivot towards renewable energy. This move strengthens its financial position and aligns with its strategy to grow in the renewables sector, as evidenced by its ongoing development of the Glenskinnan Renewable Energy Park. The company maintains strong operational performance in its Dutch gas fields and Scottish wind farm, while also exploring new investment opportunities and reducing its North Sea operational footprint.

Parkmead Group Announces Change in Major Holdings

The Parkmead Group PLC has announced a change in its major holdings, with Stonehage Fleming Investment Management Limited increasing its voting rights to 12.00% from a previous 11.97%. This adjustment in holdings signifies a slight shift in the company’s shareholder structure, potentially impacting its governance and strategic decision-making processes.

Parkmead Completes Sale of Subsidiary to Focus on Onshore Energy

The Parkmead Group has completed the sale of its subsidiary, Parkmead (E&P) Ltd, to Serica Energy for an immediate cash payment of £7.3 million, with additional firm and contingent payments potentially bringing the total to £134.3 million. This strategic move allows Parkmead to focus on its onshore natural gas and renewable energy projects, positioning the company for future growth and acquisition opportunities in these sectors.

Parkmead Completes Sale of Subsidiary to Focus on Onshore Growth

The Parkmead Group has completed the sale of its subsidiary, Parkmead (E&P) Ltd, to Serica Energy for an immediate cash payment of £7.3 million, with additional firm and contingent payments possible. This strategic move allows Parkmead to focus on its onshore natural gas and renewable energy projects, positioning the company for future growth and value maximization.